l FCA Regime Highlights Duty of Competence | SMCR Compliance

New FCA regime highlights F&I professionals’ duty to ‘stay competent’

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On December 9 this year, the Financial Conduct Authority’s (FCA) Senior Managers and Certification Regime (SMCR) for consumer credit firms – including motor finance and insurance sellers – comes into effect.

The FCA sees SMCR as a catalyst for change, encouraging greater accountability for individuals responsible for selling consumer finance products, and setting a new standard for personal conduct.

The SMCR introduces a new level of accountability for finance professionals, a holistic approach through which knowledge, skills and education are considered critically important.

It marks a step-change in how senior managers should approach their role.

The SMCR covers all vehicle finance sales professionals to an extent, whether they work for a broker, lender or dealership. With a greater focus on individual accountability, it therefore means individuals must continue to learn and develop to ensure they remain at the top of their game.

This new accountability regime promotes the idea that those responsible for the sale of consumer finance need to understand more about the industry and ensure best practice in sales, rather than simply knowing what each product is.

Theoretical knowledge is not enough anymore. Sales specialists need to be able to practically demonstrate their expertise in their dealings with customers.

https://www.am-online.com/opinion/2019/10/04/new-fca-regime-highlights-fandi-professionals-duty-to-stay-competent